Issue Paper
GRAFT AND CORRUPTION
by: Rodel C. Cuyco
Introduction
Graft and corruption is a lingering problem
that has adversely affected the Philippine Administrative System from
generation to generation. It creeps in all the branches of government - the
executive, the legislature and the judiciary. It hampers or cripples
delivery of public goods and services and put the entire government in bad
light in the international community. It has dampened people’s trust in
government institutions and policies.
Generally speaking,
corruption is “the abuse of entrusted power for private gain”. Corruption can
be classified as grand, petty and political, depending on the amounts of money
lost and the sector where it occurs (Transparency
International).
The word corruption
is derived from the Latin word “corruptus,” which means “corrupted” and, in
legal terms, the abuse of a trusted position in one of the branches of power
(executive, legislative and judicial) or in political or other organizations
with the intention of obtaining material benefit which is not legally justified
for itself or for others (Sumah). It pervades public life, keeping tax revenues
low and hurting efforts to alleviate poverty. (http://factsanddetails.com/southeast-asia/)
According to
corruption watchdog Transparency International, corruption worsened in the
Philippine government in 2019 as it ranked 113th of 180 countries studied on
their perceived political integrity (www.cnn.com).This only means that the government’s
previous and current efforts in combatting corruption is insufficient or
ineffective or needs improvement. It is thus a must for the government along
with the private sector as it forges a corruption-free government to
continuously track and determine the nature and extent of corruption so that
appropriate responses and interventions will be put in place and/or constantly
improved.
With corruption, the government will find a
difficulty in attaining its national long-term vision called Ambisyon Natin
2040 and realizing its commitment in the Sustainable Development Goals 2030.
Hence, it is just appropriate that this issue
should be continuously and vigorously studied so that sustainable and practical
solutions will be formulated and implemented.
Root Causes of
Corruption
Corruption in the
Philippines can be traced in its history, public ethics, values and culture of
the people.
Historical
Corruption in the
Philippines can be traced during our colonial past. According to Corpuz
(1957), the Spanish colonial government has fatal flaw: the private and
personal interests of the members led them to subvert the declared colonial
administration. The moral corruption of its members was the fundamental
weakness of the colonial bureaucracy (Corpuz 1957:129). The colonial
administration was “bankrupt in constructive policy, as the bureaucrats were
corrupt in their motivations and either incompetent or oppressive in their
actions (Alfiler:46-47).” During the early Philippine Republic after the
American Period, Corpuz noted that the bureaucracy seemed to have entered a
period of “normalcy” in that the public charges of corruption committed by
government officials seemed to be part of the regular fare of newspapers. The
public appeared to have accepted the accusations of corruption raised against
bureaucrats as being part of the “normal” scheme of things (Alfiler:53). This
has run through the next administrations up to the present time.
Ethics, Culture and Values
Corruption is a
failure of public ethics, and generally holds back growth and progress.
(Reyes:381-382).
Some blame the
Philippines’s corruption problem on the merging of Filipino traditions with
American institutions. One Filipino political scientist told Smithsonian
magazine, “Americans taught us the idea of honesty and integrity in civil
service but local culture conflicts with the democratic model.” With no
tradition of civil service and the prevalence of strong family and community
ties, bribery and nepotism have seeped into the system (http://factsanddetails.com.)
Specific culture of
Filipinos is enhancing the proliferation of graft and corruption. The strong
family ties justify giving benefits to unqualified recipients which are very
evident in employment and awarding of contracts. This societal phenomenon is
adversely affecting professionalism, efficiency, and effectiveness in the
government service as well as in the construction of public infrastructure and
procurement of government supplies and materials that are sometimes substandard
& overpriced (Aranas.)
Nature, Extent and
Magnitude of the Problem
Nature
Grand corruption consists of acts committed at a
high level of government that distort policies or the central functioning of
the state, enabling leaders to benefit at the expense of the public good. Petty
corruption refers to everyday abuse of entrusted power by low- and mid-level
public officials in their interactions with ordinary citizens, who often are
trying to access basic goods or services in places like hospitals, schools,
police departments and other agencies (Transparency International).
Acts that constitutes the crime of corruption
are all contained in the main anti-corruption laws that which include among so
many others Republic Act No. 3019 (The Anti-Graft and Corrupt Practices Act)
and Republic Act 6713 (The Code of Conduct and Ethical Standards for Public
Officials and Employees).
Republic Act No. 3019 (The Anti-Graft and
Corrupt Practices Act) criminalizes active and passive bribery,
embezzlement, extortion, abuse of office and conflict of interest in the public
sector. Bribery of public officials and trading in influence are also
criminalized in the Anti-Red Tape Act. The Act forbids office-holders from
accepting any gifts or material benefits in exchange for any government permit
or license. Under the Revised Penal Code, gifts are classified as indirect
bribery. Under the Code, public officials are required to regularly file a
statement of their assets and liabilities. In case of any discrepancy between
the official’s asset declaration and the amount of property or financial assets
actually possessed, the official is subject to immediate dismissal. Punishments
for corrupt acts include imprisonment of up to ten years, a fine, removal from
office, and/or confiscation of property.
Republic Act 6713 (The Code of Conduct and
Ethical Standards for Public Officials and Employees) prohibits public
officials and employees from soliciting or accepting, directly or indirectly,
any gift, gratuity, favour, entertainment, loan or anything of monetary value
from any person: (a) in the course of their official duties; or (b) in
connection with any operation being regulated by, or any transaction which may
be affected by, the functions of their office.
Extent and Magnitude
Corruption in the country is of high magnitude
as this involves huge amount and it creeps even up to the highest-ranking
officials of the country. For example is the PDAF corruption scandal which
involved some senators. It must be noted that the country has gained the
notoriety as one of the most corrupt country in Asia.
Deputy Ombudsman Cyril Ramos reckons that the
government might have lost to corruption around ₱1.4 trillion in the past two
years. Using 2017 United Nations Development Programme’s estimates, (Ramos) said
corruption loss in the Philippines equated to 20 percent of its annual
government appropriation. (https://cnnphilippines.com)
The reason for this long-running unimpressive
rating is that conditions in the Philippines point to a systemic failure, where
institutional safeguards work in fits and turns and reforms may not be working.
Worse – in the clearest indication that the problem is embedded in the
country’s heritage of clientelism – institutions are vulnerable to political
capture by predatory interests. An inconsistently functioning legal system,
weak accountability structures, and inadequate financial transparency are just
some of laws that negate the country’s attempts at institutional effectiveness
and credibility. (Reyes:382).
How it Affects to the
Effective and Responsive Functioning of the PAS
According to the Asian Development Bank, corruption
has negative consequences to institutions. These are the following (ADB:17):
1.
It distorts public policies, since it tends to
favor vested or selfish interests that, more often than not, are detrimental to
serving the public interest.
2.
Corruption leads to poor quality of programs,
services and projects; breeds mediocrity; and renders administrations
inefficient and ineffective.
3.
It further undermines merit and fitness in
public personnel administration and inhibits civil servant motivation.
4.
Corruption weakens implementation, encourages
tolerance of negative bureaucratic behaviour, and ruins public trust and
confidence in the Government.
Outcomes or Impact of
the Problem to the PAS and the Whole Government/Country
Corruption impacts societies in a multitude of
ways. In the worst cases, it costs lives. Short of this, it costs people their
freedom, health or money. The cost of corruption can be divided into four main
categories: political, economic, social and environmental (Transparency
International).
1.
On the political front, corruption is a major
obstacle to democracy and the rule of law. In a democratic system, offices and
institutions lose their legitimacy when they’re misused for private advantage.
(Transparency International).
2.
Economically, corruption depletes national
wealth. Corrupt politicians invest scarce public resources in projects that
will line their pockets rather than benefit communities, and prioritise
high-profile projects such as dams, power plants, pipelines and refineries over
less spectacular but more urgent infrastructure projects such as schools,
hospitals and roads. Corruption also hinders the development of fair market
structures and distorts competition, which in turn deters investment
(Transparency International).
3.
Corruption corrodes the social fabric of
society. It undermines people's trust in the political system, in its
institutions and its leadership. A distrustful or apathetic public can then
become yet another hurdle to challenging corruption (Transparency
International).
4.
Environmental degradation is another consequence
of corrupt systems. The lack of, or non-enforcement of, environmental
regulations and legislation means that precious natural resources are
carelessly exploited, and entire ecological systems are ravaged (Transparency
International).
5.
Corruption impedes service delivery and
undermines the country’s ability to pursue its development objectives.
Corruption pulls down the economy as it distorts and deters trade and
investment, reduces revenues, increases costs, and propagates wasteful
allocation and use of scarce resources (ADB:17).
6.
The social costs of corruption include
undermining the rule of law and political legitimacy. Corruption also increases
risks to national security and peace and order. Furthermore, corruption
threatens the welfare of the people. (ADB:17)
Reforms Instituted by
the Government to Address this Problem
Over the years, the government has implemented
various reforms to address corruption is all levels. For this discussion, I
have underscored some reforms in terms of policy, institutional mechanism, and citizen’s
participation.
POLICY
1.
Passage of numerous laws addressing graft and
corruption; the main references are the Revised Penal Code of 1960, Republic
Act No. 3019 (The Anti-Graft and Corrupt Practices Act), and Article XI of the
1987 Constitution of the Republic of the Philippines (ADB:17).
2.
Implementation of public procurement reforms
spearheaded by the Department of Budget and Management (DBM) (ADB:19). This include
electronic bidding to improve efficiency and accountability.
3.
Under the leadership of COA, key financial
management reforms were undertaken, including simplification and
computerization of the Government’s accounting system, shift from residency auditing
to the audit team approach, and introduction of participatory audits with civil
society organizations (ADB:19)
4.
Through Civil Service Commission, setting
standards for government appointments and a punitive role by meting out
penalties for violations of civil service rules. (ADB:21)
5.
Establishment of governance standards which
include Seal of Good Local Governance, Citizen Feedback System, Full Disclosure
Policy, Public Financial Management, Anti-Red Tape, Government Integrated
Financial Management Information System (GIFMIS), among others (PDP 2017-2022:
63-63). These service standards are directed towards strengthening transparency
and accountability.
INSTITUTIONAL MECHANISM
1.
Creation and establishment of Inter-Agency
Anti-Corruption Coordinating Council to
institutionalize transparent, accountable, and participatory governance .
2.
Creation of Governance Commission for GOCCs
(GCG) in 2012 to fight corruption in government-owned and controlled
corporations and improve the quality of management (PDP 2017-2022:63).
CITIZENS’S
PARTICIPATION
1. Active involvement of
civil society, private sector, and various media representatives, in demanding
public accountability and transparency from the Government. Critical alliances
were formed via projects that support anticorruption programs (ADB:19).
2. In November 2012, the
Commission on Audit (COA) launched the Citizen Participatory Audit (CPA)
Program. This initiative to open the audit processes to citizens and CSOs was
intended to improve effectiveness in the use of public resources (PDP
2017-2022).
How effective or
successful are these reforms? What made these reforms successful/unsuccessful?
The Philippine Development Reform (2017-2022)
Plan has noted that previous reforms to eradicate corruption has contributed to
significant improvement of the Philippine rankings in most global indicators.
Although the country gained recognition from international award-giving bodies,
it still ranked lower than most of the neighbors in the Association of
Southeast Asian Nations (ASEAN) (PDP 2017-2022:59).
Specifically, reasons for weak implementation of
reforms are as follows:
POLICY FRAMEWORKS
1.
The legal anti-corruption framework in the
Philippines is complicated and poorly enforced (HRR 2016)
(https://www.ganintegrity.com/portal/country-profiles/the-philippines/.)
2.
Philippine legislation does not contain any
provisions on protecting whistleblowers who report on corruption (https://www.ganintegrity.com/portal/country-profiles/the-philippines/.).
3.
Though there are legal frameworks and existing
policies, compliance to standards remains low due to inadequate control
mechanisms and the agencies’ lack of appreciation of the flexibilities allowed
in the system (PDP 2012-2022:64)
4.
Although there are many election laws that
govern election spending and contributions, there are still loopholes.
Candidates resort to illegal means (for instance, anomalous use of the Priority
Development Assistance Fund or PDAF, undeclared campaign contributions, and so
on) to ensure that they will have funds necessary for their election or reelection.
Also, elected officials thus become beholden to contributors who have interests
to push with them once they are elected (Espiritu).
INSTITUTIONAL MECHANISM
1.
There is a lack of cooperation between law
enforcement agencies, and officials are rarely prosecuted and convicted for
corruption crimes (HRR 2016)
(https://www.ganintegrity.com/portal/country-profiles/the-philippines/.) (ADB:22-23).
2.
Agencies deputized to fight graft &
corruption are not well funded by the government( Aranas.).
3.
There is also lack of recognition, merits,
awards, and rewards given by the government for the efforts of anti-corruption
bodies (Aranas).
4.
Prosecution of graft and corruption cases is
severely constrained by the lack of competent investigators and prosecutors,
huge backlog of court cases, lack of financial resources, and corruption of OMB
personnel and judges (ADB:23).
5.
The statement of assets and liabilities, which
is an effective mechanism to curb graft and corruption is religiously submitted
yearly by all public officials. However, no agency of government is deputized
to examine the veracity of the data entered in those statements. Most public
officials with unexplained wealth can successfully hide the same by paying
accountants to make accurate and official statements for them. (Aranas.).
CITIZEN’S
PARTICIPATION
1.
Platforms for citizen participation though
available were underutilized by the general public. Two possible reasons are
ignorance and apathy because of misinformation or lack of proper information
(PDP 2017-2022:62).
What can you suggest
to better address the problem? Your suggestions must address the gaps that you
have identified in the reforms already in place.
In my opinion, anti-corruption campaign should
focus on the following:
1.
Strict enforcement of the law.
Our country has enough laws to deter corruption
and to punish corrupt officials. Institutions are even in place to handle
corruption cases which basically include the Commission on Audit, Office of the
Ombudsman and the Sandiganbayan. Strict enforcement of these laws and
fortifying these offices and courts from influence-peddling is much needed.
2.
Massive political education and values education
campaign
Since corruption a
described above as systemic and something that is a “failure of ethics
(Reyes),” what better way to address it is to instil among Filipinos through
education the values of honesty in public service.
Since election is the entry point of corrupt
officials, political education should be massive during campaign period so that
people will be reminded to elect only leaders who have high integrity and
competence.
3.
Corruption watchdogs should be supported and
protected.
Fighting corruption will be much effective and
sustained if we have active civil society organizations who serve are
watchdogs. They must be provided with funding support by the government and
needed security.
Below are specific recommendations from various
sources whom I believe should be implemented to address corruption in this
country.
PROPOSED POLICY
REFORMS
1.
Enhancing sanctions for corruption and
strengthening anti-corruption institutions. The Philippines already has a
fairly mature legal framework for fighting corruption (Espiritu).
2.
Passage of the Civil Service Code. Address
deeply rooted problems besetting the public service (such as graft and
corruption, red tape, etc.) (PDP 2012-2022:75).
3.
Enhanced Code of Conduct and Ethical Standards for
Public Servants of 2016. Amend RA6713 “Code of Conduct and Ethical Standards
for Public Officials and Employee’s” to promote shared public values in civil
servants (PDP 2012-2022:75)
4.
Passage of a law that will protect
whistleblowers.
5.
Passage of Freedom of Information Bill. Require
government agencies to allow public review and copy of all official information
to promote meaningful and increased participation of the people in government
decision-making and public accountability (PDP 2012-2022:75)
6.
Enactment of the law regulating campaign
contributions. Implement finance reforms in campaign expenditures, sources of
funds and management of such to minimize corruption and promote transparency
for informed decision-making (PDP 2012-2022:75).
7.
Amendment of the Commission on Audit charter.
Repeal the Government Auditing Code of the Philippines to review and update COA
provisions (PDP 2012-2022:75).
8.
Enactment of a law for an extensive voter
education at the grassroots level (Aaranas).
9.
Reforming government budget processes. The goal
is to achieve discipline, allocative efficiency, and operational efficiency in
the preparation and implementation of the government budget. Among the areas
that can be looked into are (Espiritu);
o
Enhancing the integrity and effectiveness of
government-wide and agency level financial management systems
o
Further improving program performance monitoring
and evaluation
o
Further simplifying and making more transparent
public procurement, eliminating noncompetitive aspects and rooting out supplier
cartels
o
Limiting congressional discretion over detailed
line-items (in simpler terms, abolishing “pork barrel.” Although a positive
development in this regard was the Supreme Court’s declaring the PDAF illegal,
but legislators are still finding ways to go around this ruling).
PROPOSED
INSTITUTIONAL REFORM
1.
Reforming the Civil Service. One reason often
cited why civil servants turn bad is their low and uncompetitive pay. Other
reasons are because they know that they have patrons in high places who will
protect them and to whom they are beholden. Some ways by which these can be
addressed are (Espiritu):
o
Limiting the scope for patronage in public
employment, depoliticizing the civil service, and regulating the use of casual
and contractual employees
o
Providing more competitive salaries (to the
extent affordable) and decompressing pay scales to reflect merit, performance
and responsibilities.
2.
Targeting selected department and agencies. Some
agencies are more prone to corruption by virtue of their functions, e.g., those
involved in revenue collections; in spending large chucks of the government
budget through implementation of many and/or large public service programs and
projects; those in charge of regulating large industries, particularly those
requiring government franchises and authorities to operate (Espiritu).
3.
Maximizing the use of current technological
revolution to reduce the need for human contact in certain transactions with
government agencies, for instance, in obtaining clearances (Espiritu).
4.
Each agency must provide clear information on
the processes and procedures involved in obtaining a particular service,
including time limits for such processes, as well as mechanisms for filling
complaints (Espiritu).
CITIZENS
PARTICIPATION
1.
Support active and vigilant civil society
groups, (iii) protecting a free media, (iv) promoting ongoing initiatives to
involve people in the fight against corruption, and (vii) accepting support
from international development agencies (ADB:17).
2.
Promote public awareness of anti-corruption
drives. The media will be used to publicize enforcement cases and encourage the
public to report corruption. Schools and organizations will also be tapped to
educate students and communities on anti-corruption. Corruption prevention
talks and ethics development seminars will be done for public servants and the
business sector (PDP 2017-2022: 67)
3.
Integrity Caravans, initiated by the Ombudsman
(OMB), during youth and multi-sectoral forum, and barangay good governance
seminars will be continued. This will promote and communicate the work and
various anti-corruption programs of the OMB, and ways by which the public can
be involved (PDP 2017-2022:67)
4.
Increasing public oversight of government,
transparency and public access to information. The key principle is that the
public has the basic right to know what the government, its agencies and
officials who are all accountable to them, are doing and should have a means
for assessing their performance (Espiritu).
5.
Institutionalization of citizen’s participation
in the budget process. Allow the public to participate in decisions regarding
the local budget which promotes shared responsibility (PDP 2012-2022:75)
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